U.S. spirits industry warns of “debilitating” European tariffs on whiskey
The U.S. spirits sector is bracing for fallout after the European Union targeted U.S. whiskey in retaliation against President Donald Trump’s steel and aluminum tariffs.
The EU’s decision to raise tariffs on U.S. whiskey to 50% is “deeply disappointing and will severely undermine successful efforts to rebuild U.S. spirits exports in EU countries,” Chris Swonger, CEO of the Distilled Spirits Council of the United States (DISCUS), said in a statement released Wednesday.
According to the council’s economic data, pandemic-driven sales of whiskey in the United States have increased by nearly 20% since 2020, topping $5 billion last year. However, sales of whiskey and other alcoholic beverages decreased in 2024 as individuals cut back on consumption in the face of growing costs of living. As a result, several companies, such as Brown-Forman, lay off around 700 staff in January.
“Reimposing these debilitating tariffs at a time when the beverage alcohol industry continues to face a slowdown in the U.S. market will further reduce growth and negatively affect distillers and farmers in every state in the country,” Swonger said.
According to DISCUS, Europe is a rising and substantial buyer for American whiskey, with shipments increasing by 60% over the last three years to $699 million after earlier taxes were lifted.
Trump put a 25% tariff on all steel and aluminum imports on Wednesday. The EU responded to what it called «unjustified» tariffs by launching retaliatory measures against up to $28 billion in US products, including ships, bourbon, and motorcycles. The EU’s reaction will be effective in April.
Shares of distilled beverage companies fell in the midday session, with Brown-Forman down nearly 7%, Remy Cointreau down about 4%, and Diageo down nearly 2%.
